U.S. gov't to release $4 billion soon for broadband

WASHINGTON (Reuters) - The U.S. government will soon release $4 billion of loans and grants aimed at expanding broadband access to underserved areas across the United States, officials said on Wednesday.

The funds are part of a $7.2 billion program to build an affordable high-speed Internet structure in rural areas. The project is being pushed by President Barack Obama, in part, to shore up the U.S. economy with job creation in the telecommunications sector.

"This funding is a down payment on the president's commitment to bring the educational and economic benefits of the Internet to all communities," Vice President Joe Biden said in a statement.

The broadband program was tucked into a $787 billion fiscal stimulus package Obama signed into law in February.

Applications for loans and grants will be accepted starting on July 14 and will continue through August 14. Details of the funding process can be found at www.broadbandusa.gov.

State and local governments as well as non- and for-profit organizations are eligible to apply.

The Commerce and Agriculture departments and the Federal Communications Commission are developing a national broadband program to reach those American households and small businesses lacking what many officials consider a necessary service.

Under the rules announced on Wednesday, the USDA and Commerce will review applications, announce a group of finalists on September 15 and start naming winners on November 7, senior administration officials said.

Some industry and public interest groups applauded the release of the guidelines. The National Cable & Telecommunications Association, which represents Comcast Corp, Time Warner Cable Inc and Cox, said it is reviewing the guidelines.